Commercial vehicle original equipment manufacturers (CV OEMs) and Tier-1 suppliers are expected to increase investments in disruptive technologies with demonstrated ability to decrease supply chain complexity and increase efficiency.
This is the key finding by a new report by Frost & Sullivan, which analyses the trends and challenges in the supply chain logistics industry and their implications on CVs.
The research firm pointed out that transportation, which is at the core of supply chain logistics, is undergoing a transformation with the help of technologies such as Artificial Intelligence (AI), Internet of Things (IoT) and telematics, data analytics, and blockchain.
The growing need to bring these technologies to the market quickly to grab the first-mover advantage is resulting in a series of collaborations and M&As with technology providers.
"The rapidly rising use of telematics and IoT in CVs is generating vast data sets, which need to be utilized effectively through Big Data analytics," said Vineeth Purushotham, research analyst for mobility at Frost & Sullivan.
"Meanwhile, this convergence of technologies is prompting OEMs to develop innovative business models such as digital freight brokerage services and Truck-as-a-Service. There will also be greater OEM focus on truck leasing, financing, used truck sales, and tractor-trailer integration,” he added.
Emerging tech sparks new business models
Entitled “Global Supply Chain Logistics Trends and Challenges and Their Implications on CVs, 2018–2025”, the report presents the key mega trends that will influence the global freight transportation industry as well as the new business models.
It also examines the major technology companies and start-ups entering and investing in the industry and studies the implications of key technological disruptions on stakeholders.
"Urban restrictions and emission regulations across the globe are enabling last-mile delivery innovations that will increase the uptake of electric CVs," noted Purushotham. "Medium- and heavy-duty CV OEMs such as Volvo, Scania, and Daimler are investing heavily in innovations in electric/fuel cell powertrains. Light CV manufacturers, on the other hand, are collaborating and partnering with technology companies and logistics providers on urban delivery innovations."
Digitisation of the supply chain is helping OEMs tackle key issues of complexity and increased service requirements. For enhanced customer value and growth opportunities, Frost & Sullivan predicts that CV OEMs and logistics service providers will look to:
- Develop a connected supply chain ecosystem.
- Focus on the less than truckload (LTL) mode of transportation with the emergence of online digital platforms and connected devices.
- Shift toward demand-driven logistics models, outsourcing, and one-stop solutions.
- Improve telematics and redesign the body and cabin with the rise of autonomous vehicles.
- Employ delivery bots to solve the last-mile delivery challenge, as they are more cost-effective and have fewer regulatory mandates.
- Develop agile urban truckswith increased manoeuvrability.